Investor expectations have been dialled up by the market returns recently

Inflated expectations

Investor expectations have been dialled up by the market returns of recent years. Independent Financial Advisers will need to add perspective and gently talk those expectations down. The latest Schroder Global Investor Study revealed some fascinating, and somewhat disconcerting, results.
– Investors expected an average annualised return of 10.7% from their portfolios over the next five years
– The younger the client, the higher the expectation.
– With an ageing population, low inflation and poor productivity, returns are likely to be lower from here.

2018 proves volatile for investors after the smooth sailing of 2017

2018 proves volatile for investors after the smooth sailing of 2017

The first six months of 2018 were unpredictable times for investors as global stock markets suffered a sudden bout of volatility. The unpredictability came as a major surprise after the general stability of 2017. Once the dust had settled there was a mixture of good and bad news. The UK markets were inevitably led by Brexit, with negotiations mainly at the intra- rather than inter-government level. The other perennial British topic, the weather, produced the Beast from the East, depressing economic activity in the first quarter.